As a next step in the evolution of our commitment to addressing climate change risks, in 2021, ClearBridge became a signatory to the Net Zero Asset Managers Initiative (NZAM).
ClearBridge Climate Change Reporting ClearBridge has aligned its climate change reporting with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) since 2019. Through our TCFD-aligned reporting, we articulate our commitment to addressing the challenge of climate change in our roles as active shareholders and stewards of our clients’ capital. TCFD-aligned reporting includes measures of carbon intensity.
Financial Markets and Institutions Investments Suppliers and Supply Chain / Logistics (Scope 3 Upstream)
Loans
Starting in 2022 we will publish an annual standalone climate report that will include details of how we aim to fulfill our commitment to both NZAM and TCFD reporting.
Third-order Effects
Rival Companies
Competition, Substitution and Disruption in the Added Dimension of Carbon Costs Pressure to Share Some of the Scope 3 Economic Burdens
Higher Input Cost Pass-Through Company Operations (Scope 1 & 2)
Traditional Customers (Scope 3 Downstream)
Owned Reserves (Future Scope 1, 2 & 3) Stranded Assets
Carbon Tax Burden
Abatement Benefits
Abatement Investment and Cost
Pass-Through
Recouping via Pass-Through
Clean Technology Revenue Opportunities
Clean Tech Clean Energy Clean Materials
New Clean Tech Customers
Income Taxation First-order Effects
Entities
Income Tax Deduction
Processes
Second-order Effects
Business Relations
Value Accretion
Value Detraction
Exhibit 2.07: Sample Analytical Framework for Carbon Tax Stress Test Source: ClearBridge Investments.
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